BSA 1 - BSA-AML Overview Questions with 100% Correct Answers | Latest Version 2024 | Verified

1. Which statement best describes the intent of the Bank Secrecy Act (BSA)? A. To make money laundering more difficult and to prevent banks from becoming unknowing intermediaries in illicit activity B. To mandate that all persons must be treated fairly when applying for credit C. To coordinate housing data for purposes of identifying possible discriminatory housing practices D. To require that banks make check deposits available within a specified period of time ID:7753F4F0CEA0466BBC713DA354C5689F - a. B is incorrect because this describes the purpose of the Equal Credit Opportunity Act. C is incorrect because this describes the primary purpose of Home Mortgage Disclosure Act. D is incorrect because it describes the primary purpose of the Expedited Funds Availability Act and Reg CC. 2. At an orientation meeting for new hires, a compliance officer explained the required elements of the financial institution's Bank Secrecy Act (BSA) compliance program. Assuming the institution is compliant, which option lists two activities that should be included in the compliance officer's explanation? A. Verification of identification procedures and internal controls B. Civil investigation procedures and training programs C. Appointing individual(s) designated as responsible for monitoring BSA compliance and independent testing D. Training programs and verification of identification procedures ID:7CAFCF07A87E4A9B88DBB5A12EDD3A2B - c. A is incorrect because verification of identification is part of the transaction process not the required compliance program and financial institutions do not conduct civil investigations. When there are significant BSA deficiencies, violations are referred to FinCEN. B is incorrect because financial institutions do not conduct civil investigations. When there are significant BSA deficiencies, violations are referred to FinCEN. D is incorrect because verification of identification is part of the transaction process not the required compliance program.3. What is the primary difference between the money laundering efforts of terrorist organizations and organized crime? A. Terrorist financing is often motivated by ideological and political goals rather than profit B. Terrorist financing focuses on the profit gained from money laundering efforts C. Terrorist financing only uses legitimate sources making it very difficult to detect D. Terrorist financing is easier to detect because it uses only commercial banks rather than other financial organizations ID:28F92FD9CCFB84F8D90219CD - a